Reuters
Global shipping backlogs hit Chile's exporters
Tuesday March 30, 5:38 pm ET
By Antonio de la Jara
SAN ANTONIO, Chile, March 30 (Reuters) - Chile's exporters, the engine of the local economy, expected a boom year on the back of high prices for key products such as copper and wood pulp, but now some are trimming expectations as the congested global shipping industry deals them costly delays.
With many of the world's cargo ships stuck in bottlenecks in busy Asian ports, Chilean exporters may pay an extra $760 million this year in higher shipping costs and warehousing fees, the Santiago Chamber of Commerce business group estimates.
Shipping prices in this South American nation rose 20 percent in January and exporters are expecting a further 10 percent increase in April and containers have to wait in port a lot longer than normal before they can be put on a ship.
Chile has projected a 26 percent rise in exports this year, to $26.3 billion, pushed by high prices for copper, wood products, salmon, fruit and wine and stimulated also by new free trade pacts with the United States, South Korea and the European Union (News - Websites) .
But some exporters are cutting back forecasts.
"Our goal was to ship 2,000 containers this year. But if things continue as they are it's possible that we'll stay at the same level as last year, 1,500 containers. The truth is, we're a little frustrated," said the head of a company that exports construction materials to other Latin American countries.
Some 60 percent of Chile's Gross Domestic Product of $75 billion comes from exports and related goods and services.
"We are going to have bottlenecks in some areas. There's a scarcity of boats these days for marine shipments," said Hugo Lavados, director of the government agency Prochile, which promotes Chilean products abroad.
The shortage is mainly due to busy ports around Asia, where ships are queued up for a month or more to pick up cargoes to feed industrializing China's demand for raw materials.
RUM WAITING FOR CARDBOARD
Cardboard is one of Chile's big forestry exports. But at least one client, Cuba's Havana Club rum, is waiting for a cardboard shipment.
"We're really worried because we have two containers that urgently need to go to Cuba, but the shipping companies tell us they don't have room right now, that they won't have a spot until April or May," said Manuel Munoz of Eminsur industrial export firm.
Eminsur is not alone.
"The lack of marine transport jeopardizes exporters' contracts ... a lot of them are worried about losing clients," said Roberto Fantuzzi, president of the Association of Manufacturing Exporters.
Waiting periods in port have expanded to several weeks from a normal one-week wait for shipment said Felipe Castro, operations manager for warehousing company Almacenamientos Exportuarios in Chile's biggest cargo port, San Antonio.
Longer storage periods mean higher costs, and that along with the higher shipping costs are an especially strong blow for smaller and newer exporters, unlike big firms that have annual contracts for mining, forestry and fruit products.
The atmosphere was strangely quiet this week at San Antonio port, on Chile's long Pacific coastline. Only one big cargo carrier was in view.
"We aren't seeing Chinese boats with the same regularity. They almost aren't coming by. And we're seeing a similar thing with European shipping lines," said stevedore Sergio Vargas.
Exporters said a planned 12-ship expansion over the three years by one of the region's biggest shippers, Sudamericana de Vapores (Santiago:VAP.SN - News), may come too late to relieve the situation. |
